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imitation promotes instability and unpredictability. That is because imitation, by definition a multiplier, can swell a single opinion into a mass movement or catapult the smallest player to the forefront of a market. Where does a fad start? How does a bubble grow? These are collective phenomena that cannot easily be anticipated, planned for, or controlled. Thus, the rise of imitation injects new uncertainty into an already uncertain world.

Mastery of the dynamics of self-reference won’t ensure mastery of its consequences. But businesses that understand how imitation works can at least try to gird themselves against its worst effects–by accounting for it in their forecasts and risk-management plans, by becoming more sensitive to unexpectedly changing circumstances, and by avoiding mindless imitation of other companies’ moves. In some instances, they may even be able to build strategies around self-reference and use the tools of imitation to influence opinion or capture new business. That won’t make the world any less confusing. But it may make it more profitable–or at least less frightening.